FXStreet (Mumbai) - Swiss National Bank (SNB) governor Jordan, while addressing SNB AGM at Bern on Friday, said the CHF is “significantly” overvalued.
On negative rates
Jordan said Low or negative interest rates are a worldwide trend which Switzerland cannot escape and hence Swiss interest rates cannot remain at zero. They have to move into negative territory in order to restore the traditional interest rate differential, thereby making it more expensive to hold Swiss francs than other currencies.
On CHF
The Swiss franc is significantly overvalued. A correction of this overvaluation is to be expected over time. SNB will remain active in the foreign exchange market as necessary in order to influence monetary conditions.